By Rogerio Jelmayer
SAO PAULO-The Brazilian unit of Spanish bank Banco Santander SA
(SAN, SAN.MC) signed an accord to assume the control of credit card
firm GetNet, as part of the bank's plans to expand its activity in
this industry in the Latin America's largest nation.
Santander agreed to pay 1.1 billion Brazilian reais ($488
million) to increase its stake in GetNet to 88.5% from 50%. The
rest will be held by former GetNet controllers.
Getnet, which launched in 2010, has a 6% share of the Brazilian
market, and it wants to reach 10% market share in the next few
years, said Santander Brasil SA chief executive Jesus Zabalza in a
recent interview.
It has grown largely at the expense of the two dominant players,
Redecard SA, a unit of Itau Unibanco Holding SA (ITUB, ITUB3.BR,
ITUB4.BR), and Cielo SA (CIOXY, CIEL3.BR), controlled by Banco do
Brasil SA (BBAS3.BR) and Banco Bradesco (BBD). Together, they have
more than 90% market share.
The acquisition of the controlling stake will allowed Santander
to guarantee more flexibility in the company's management, the bank
said.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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